Deck 48: Personal Property and Bailments

Question 1

Warehouse companies are not liable for loss or damage to property resulting from negligence.

Answer 1

False

Question 2

In most bailments, the bailee can retain the goods given by the bailor and return equivalent property.

Answer 2

False

Question 3

Constructive delivery occurs when property is physically transferred.

Answer 3

False

Question 4

Intangible personal property may be bailed.

Question 5

A fixture is normally included in a sale of land unless the sales contract specifies otherwise.

Question 6

A bailee must exercise reasonable care in preserving the bailed property.

Question 7

Simply finding something and holding onto it gives the finder legal rights in the property.

Question 8

A finder of mislaid property becomes the caretaker of the property.

Question 9

Confusion of fungible goods results in the owners' loss of their rights in the property.

Question 10

A bailment must be in writing to be valid.

Question 11

Someone who finds abandoned property acquires title to it and that title is good against the whole world, including the original owner.

Question 12

Constructive delivery is a general term for all of those acts that the law holds to be equivalent to acts of real delivery.

Question 13

Common carriers can contract away their liability for damaged goods.

Question 14

All transactions involving the delivery of property from one person to another create a bailment.

Question 15

How property is taxed and what is required to transfer or acquire property is determined by whether the property is classified as tangible or intangible.

Question 16

To be effective, a gift causa mortis must meet only two requirements: intent and acceptance.

Question 17

Trade fixtures belong to the owner of the property on which they are installed regardless of the purpose of their installation or who installed them.

Question 18

The implied warranties of merchantability and fitness for a particular purpose extend to bailments that include rights to use the bailed goods.

Question 19

Property consists of the legally protected rights and interest of a person in anything with an ascertainable value that is subject to ownership.

Question 20

The most common way to acquire personal property is to produce it.

Question 21

Gretel, an inventor, has tools in her workshop, including hammers, a table saw, and drills. She has a patent on her most recent invention, a kitchen gas grill. She licenses the patent to Home Appliances, Inc., a company in which she owns stock. Her tangible personal property includes the

A) workshop tools.
B) Home Appliances stock.
C) patent on the gas grill and license to Home Appliances.
D) all of the choices.

Question 22

Logan borrows Morris's bike to ride over mountain trails. The bike is damaged during the ride. Liable for the cost of repairing the bike is

A) Logan and Morris in equal measure.
B) Logan.
C) Morris.
D) all of the choices.

Question 23

EquipLease Company leases a thresher to Farm Harvest, Inc., a firm that contracts with farm owners to harvest their crops. The machine is seriously damaged through Farm Harvest's neglect. Most likely liable for the damage is

A) EquipLease.
B) Farm Harvest.
C) the farm owners.
D) no one.

Question 24

Orla leases a building to Pleasant Valley Residence, an assisted living facility. During the term of the lease, Orla installs a new roof and commercial kitchen appliances, and repaves the parking lot. Most likely to meet the definition of a trade fix?ture is

A) the kitchen appliances.
B) the parking lot.
C) the roof.
D) none of these choices.

Question 25

Fact Pattern 48-1B (Questions B18-B19 apply)
Truck & Transfer Inc. agrees to pick up two containers for United Home Products Corporation and store their contents, to be delivered later. While Truck & Transfer un?loads one container, the other disappears from the company's loading dock.
Refer to Fact Pattern 48-1B. These facts give rise to

A) a presumption of negligence by Truck & Transfer.
B) a presumption of theft by a third party.
C) a presumption of theft by Truck & Transfer.
D) United Home's liability for the container's loss.

Question 26

Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her considerable assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no

A) acceptance by the donee.
B) constructive delivery.
C) donative intent.
D) relinquishment of control.

Question 27

Oleg takes a PowerMade-brand rototiller to QuikFix Inc. for repairs. Lacking certain parts, QuikFix ships the rototiller to Repair & Parts Company. While in Repair & Parts's possession, the machine is damaged. QuikFix can recover for the damage from

A) no one.
B) Oleg.
C) PowerMade.
D) Repair & Parts.

Question 28

GR8 Stores, Inc., hires Haul-Way Company, a common carrier, to trans?port 500 Intelo Game consoles from San Diego to Phoenix. En route, a pothole causes the truck to crash, damaging the goods. Liability for the damage most likely rests with

A) GR8 Stores and Haul-Way.
B) GR8 Stores only.
C) Haul-Way only.
D) Intelo only.

Question 29

Dallas asks Eddie if he can store his furniture in Eddie's garage while he serves a tour of duty with the U.S. Marines Corps. Eddie agrees. This is

A) a bailment.
B) accession.
C) a gift causa mortis.
D) abandoned property.

Question 30

Einar owns a 1967 Ford Mustang, which Ginny customizes and details to Einar's specifications. The car earns an award at the Regional Motorsports Customizing Convention. The result of Ginny's efforts is

A) accession.
B) confusion.
C) conversion.
D) production.

Question 31

Randall steals a damaged, broken bike that is parked, unlocked, in a dorm bike rack. He repairs, paints, and replac?es parts on the bike un?til it is like new. The original owner, Sabi, then claims it. The bike be?longs to

A) John and Kim in equal measure.
B) John because he made substantial improvements to it.
C) the state under the applicable estray statute.
D) Kim because John stole it.

Question 32

Mallory's sister Naomi gives Mallory a leather working kit for Christmas. Mallory uses the kit to make a saddle. Mallory's acquisition of the saddle is by

A) gift.
B) accession.
C) confusion.
D) production.

Question 33

Miranda delivers her bridesmaid's dress to Nina for alterations. Nina promises that the dress will be ready within five business days. Miranda agrees to pay the charge when she picks up the dress. This is

A) an implied bailment.
B) an involuntary bailment.
C) an express bailment.
D) not a bailment.

Question 34

Ester sells shares in Fast Food Franchise Company to Gaye. Ester does not hand the stock certificates to Gaye, but gives her the key to a safety-deposit box in Heartland Bank in which the certifi?cates are locked. Presenting the key is

A) incomplete delivery.
B) constructive delivery.
C) production.
D) conversion.

Question 35

Nero and Omar agree to buy natural gas to sell to Power Fuel Refinery and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is

A) a bailment.
B) production.
C) confusion.
D) in violation of the law.

Question 36

James works at Kay's Breakfast Café. After work, in the parking lot, James finds a diamond ring lost by Lani. Title to the ring is possessed by

A) James.
B) Kay's.
C) Lani.
D) the state.

Question 37

Denny allows Elbert to store his trailer on Denny's property for $20 a month while Elbert works temporarily at a distant job site. Later, Denny no?tices rainwater collecting in the trailer and covers it with a tarp at a cost of $50. This cost is most likely borne by

A) Denny and Elbert in equal measure.
B) Denny.
C) Elbert.
D) Cody's employer.

Question 38

In contemplation of death during sur?gery, Donnelly gives his guitars to Ezri. The surgery is successful, and Donnelly recovers from the operation. The gift of the guitars is

A) not revoked because it was a gift causa mortis.
B) not revoked because it was a gift inter vivos.
C) revoked because it was a gift causa mortis.
D) revoked because it was a gift inter vivos.

Question 39

Fact Pattern 48-1B (Questions B18-B19 apply)
Truck & Transfer Inc. agrees to pick up two containers for United Home Products Corporation and store their contents, to be delivered later. While Truck & Transfer un?loads one container, the other disappears from the company's loading dock.
Refer to Fact Pattern 48-1B. Truck & Transfer can avoid liability

A) by proof that Truck & Transfer was not negligent.
B) by proof that Truck & Transfer's loading dock is in a high-crime area.
C) by proof that United Home was negligent in hiring TTC.
D) under any circumstances.

Question 40

Luther leaves his pick-up truck at Midtown Auto Service for an oil change. This is

A) a bailment.
B) accession.
C) none of the choices.
D) production.

Question 41

Gene leaves her Honda Fit with Intown Motors for routine maintenance. On its return, the interior of the car is greasy and the exterior is scratched and dented. Who suffers the loss and why?

Question 42

Quentin wants to give Rowena a pearl necklace that he has in his safe de?posit box at Security Bank. The bank is closed for a holiday. Quentin gives Rowena a key to the box and tells her to go to the bank after the holi?day and take the necklace. Rowena does this. The next day, Quentin dies unex?pectedly. His heirs want the necklace. What type of gift was this? Can Rowena keep the necklace?